By BEST Childcare Consulting
On 10 December 2025, the Fair Work Commission handed down a decision that deeply resonated across the early childhood education and care sector. It formally acknowledged what educators, leaders and families have known—and lived—for decades: the work of caring for, educating and protecting young children has been systematically undervalued, in large part because it is a female-dominated profession.
Known as the Gender Undervaluation Determination, this landmark decision brings long-overdue recognition to the skill, responsibility, emotional labour and professional judgement embedded in children’s services. It introduces formal changes to the Children’s Services Award 2010, reshaping classification structures and increasing minimum pay rates over time.
For early learning services, this moment represents far more than a pay rise. It is a meaningful step toward fair recognition, workforce sustainability, and the professional respect that educators deserve for the vital role they play in shaping children’s lives, families’ trust, and our broader community.
This article contains and explains all you need to do to get ready for the changes next year and QIP write ups you can use to demonstrate your exceeding practices.
What the determination actually does, in plain English
- Changes the Children’s Services Award 2010 (minimum pay rates + classification structure) to address gender-based undervaluation through an award review process under s.157 of the Fair Work Act.
- Sets a start date: operative from 1 March 2026 (applies from the first full pay period on or after that date).
- Provides a phased wage increase approach:
- 5% increase to minimum award rates applying from 1 March 2026 for most classifications, then
- further increases each 30 June (each year from 2026) as the new structure is progressively implemented and aligned to benchmark settings used by the panel.
- Introduces a simplified classification structure for Children’s Services Employees (CSEs) (moving to 8 levels with clearer role/qualification expectations).
Who it affects
It affects employees covered by the Children’s Services Award 2010 (e.g., many long day care and OSHC roles—educators, room leaders, some coordinator/assistant director/director classifications depending on coverage).
It does not impact the Educational Services (Teachers) Award 2020 (teachers are treated separately).
What This Means for Teachers (Educational Services (Teachers) Award 2020)
Importantly, the Gender Undervaluation Determination does not apply to employees covered by the Educational Services (Teachers) Award 2020. Early childhood teachers are treated separately because their roles, qualifications and industrial coverage sit under a different award framework. However, this does not mean teachers are excluded from gender undervaluation considerations. The Fair Work Commission has clearly indicated that teachers will be addressed through a separate process, with further work expected to examine whether teacher wages in early childhood settings are also affected by historical gender-based undervaluation. For services, this means no immediate classification or pay changes are required for teachers under this Determination, but future reform is anticipated, and services should plan for potential wage adjustments for teachers as part of ongoing sector-wide reform.
How This Affects the Workforce Retention Payment (WRP)
The Gender Undervaluation Determination interacts closely with the Workforce Retention Payment (WRP) that many services are currently receiving. The WRP was designed as a temporary government-funded top-up to lift educator wages above award rates while longer-term structural wage reform was underway. As the new minimum award rates increase from 1 March 2026, services that are paying educators at or above the required WRP percentage may find that part of the award increase is absorbed into the existing WRP amount, rather than resulting in an immediate additional cost to the service. In practical terms, this means the gap between award rates and the WRP-mandated pay level reduces over time. Services must still ensure educators are paid at least the correct new award minimums, but the Determination is intended to gradually replace the need for temporary wage supplements as structural pay reform is implemented.
Why the Gender Undervaluation Determination Matters
The Gender Undervaluation Determination formally recognises that work in early childhood education and care has been historically undervalued because it is a female-dominated profession. The Fair Work Commission found that educators and support staff carry significant responsibility, skill, emotional labour and regulatory risk, yet their pay had not reflected this. The determination corrects this by redesigning classifications and lifting minimum award wages, strengthening professional recognition, improving workforce retention, and supporting better outcomes for children and families. This is not a one-off pay rise—it is a structural reset of how ECEC work is valued.
Key Dates & What Childcare Management Needs to Do
Now – February 2026
- Review all roles and qualifications (educators, cooks, support staff).
- Map each employee to the correct new CSE level (or Support Worker level).
- Check cooks: if they hold or are working toward an ECEC qualification and may be counted in ratios, they must be paid at the appropriate CSE educator level.
- Update position descriptions to match duties and responsibilities.
- Model payroll impacts and confirm how above-award payments or the Worker Retention Payment interact with the new minimums.
- Prepare staff communications explaining what will change and why.
1 March 2026
- New minimum award rates and classifications take effect from the first full pay period on or after this date.
- Update payroll systems to ensure correct rates are paid.
- Implement translated classifications for all staff.
March–June 2026
- Monitor Fair Work’s updated Pay Guide once published and cross-check payroll.
- Document actions in the QIP, particularly under QA4 (Staffing Arrangements) and QA7 (Governance and Leadership).
Ongoing (Annual)
- Plan for future staged increases as part of the Commission’s implementation pathway.
- Continue classification reviews when roles, duties or qualifications change.
Key Points
- The new classification structure (CSE Levels 1–8) replaces the old mix of Levels and transitional sub-levels to create clearer pathways based on qualifications and responsibilities.
- There’s a translation schedule so employees at old classifications are transitioned fairly into the new CSE levels.
- Some employees who had higher historical rates are protected — meaning they cannot be forced below their existing rate even if the new structured rate is lower.
- The rates and structure apply from the first full pay period on or after 1 March 2026.
New Classification Structure: CSE Levels 1–8
CSE Level 1 – Introductory Educator:
This level applies to educators with less than 12 months’ experience who are developing foundational skills under supervision.
CSE Level 2 – Educator:
This level applies to educators with 12 months or more experience who contribute consistently to daily practice and routines under guidance.
CSE Level 3 – Qualified Educator:
This level applies to educators who hold a Certificate III in Early Childhood Education and Care and independently support children’s learning and wellbeing.
CSE Level 4 – Experienced Educator:
This level applies to Certificate III qualified educators with at least four years of post-qualification experience who demonstrate advanced practice and mentor others.
CSE Level 5 – Advanced Educator:
This level applies to educators who hold a Diploma of Early Childhood Education and Care and take increased responsibility for curriculum, leadership, and compliance.
CSE Level 6 – Room Leader:
This level applies to appointed Room Leaders or OSHC assistants who lead teams, oversee room operations, and support quality improvement.
CSE Level 7 – Assistant Director:
This level applies to coordinators and assistant directors with AQF Level 5 or 6 qualifications who support operational leadership and regulatory compliance.
CSE Level 8 – Director:
This level applies to service directors responsible for overall leadership, governance, and compliance, typically holding a degree or equivalent qualification.
What does the gender undervaluation determination is mean for me and my pay rate?
STEP 1 Find your role on the new CSE levels
STEP 2 Check the tables for your role to see what your approximate pay rate will be
Children’s Services Employee (CSE) Levels Pay Comparison: Current Rates → New Rates (1 March 2026)
“Current rate” = minimum award rate as at 1 July 2025
“New rate” = minimum award rate applying first full pay period on or after 1 March 2026
“Hourly increase” is the approximate increase per hour comparing current rate to the new rate
Based on: Fair Work Children’s Services Award 2010 (2025 pay guide), Fair Work Gender Undervaluation Determination (10 Dec 2025) & ACN’s published translated rate tables (which align with the Determination schedules).
Because the updated Fair Work Pay Guide has not yet been published, the rates shown are valid sector interpretations only, with the official, authoritative minimum rates to be confirmed when Fair Work releases the consolidated Pay Guide reflecting the 1 March 2026 changes.
STEP 1. What will my job role be classified as on the new CSE levels from March 2026?
Review all positions and mapped previous award classifications to the new CSE Levels 1–8 in line with qualifications, experience and responsibilities.
Old Classification → New CSE Classification Mapping
| Old Award Classification (Pre-March 2026) | Typical Old Job Title / Description | New CSE Level (from March 2026) | New Classification Title |
| Trainee / Entry Level Educator | New educator, probationary role, less than 12 months’ experience | CSE Level 1 | Introductory Educator |
| Child Care Worker / Assistant | Educator with experience but not yet qualified; supporting routines under supervision | CSE Level 2 | Educator |
| Certificate III Educator (Level 3 or equivalent) | Cert III qualified educator working independently with children | CSE Level 3 | Qualified Educator |
| Experienced Cert III Educator (higher step / long-service level) | Cert III educator with significant experience, mentoring others | CSE Level 4 | Experienced Educator |
| Diploma Qualified Educator | Diploma educator responsible for curriculum, mentoring, and compliance support | CSE Level 5 | Advanced Educator |
| Room Leader / Senior Educator / OSHC Assistant | Leading a room or OSHC program, supervising staff | CSE Level 6 | Room Leader |
| Assistant Director / Coordinator | Second-in-charge, program or operational coordination | CSE Level 7 | Assistant Director |
| Director / Service Manager (CSA-covered) | Overall service leadership, governance and compliance | CSE Level 8 | Director |
Who does it effect?
It affects employees covered by the Children’s Services Award 2010 (e.g., many long day care and OSHC roles—educators, room leaders, some coordinator/assistant director/director classifications depending on coverage).
What if I am a teacher working in Childcare?
It does not impact the Educational Services (Teachers) Award 2020 (teachers are treated separately).
Early childhood teachers are treated separately because their roles, qualifications and industrial coverage sit under a different award framework.
However, this does not mean teachers are excluded from gender undervaluation considerations.
The Fair Work Commission has clearly indicated that teachers will be addressed through a separate process, with further work expected to examine whether teacher wages in early childhood settings are also affected by historical gender-based undervaluation.
STEP 2: For Educator Classifications (CSE 1–8)
| CSE Level | Typical Role Description | Current Min Rate (Jul 2025) | New Min Rate (Mar 2026) | Hourly Increase |
| CSE 1 | Introductory Educator / Entry Level | ~$24.70/hr | $26.19/hr | + ~$1.49/hr |
| CSE 2 | Educator (under supervision / progressing) | ~$25.60/hr | $27.00/hr | + ~$1.40/hr |
| CSE 3 | Cert III Qualified Educator | ~$27.10/hr | $29.52/hr | + ~$2.42/hr |
| CSE 4 | Experienced Educator | ~$29.10/hr | $31.50/hr | + ~$2.40/hr |
| CSE 5 | Diploma Qualified Educator | ~$30.87/hr | $33.24/hr | + ~$2.37/hr |
| CSE 6 | Room Leader | ~$32.37/hr | $34.78/hr | + ~$2.41/hr |
| CSE 7 | Assistant Director / Coordinator | ~$33.90/hr | $36.37/hr | + ~$2.47/hr |
| CSE 8 | Director (CSA-covered) | ~$39.50/hr | $41.93/hr | + ~$2.43/hr |
STEP 2: For Support Workers – Pay Comparison Table
(Support roles not holding / not working toward ECEC qualifications and not counted in ratios)
| Classification | Typical Role Description | Current Min Rate (Jul 2025) | New Min Rate (Mar 2026) | Hourly Increase |
| Support Level 1.1 | Support Worker – On commencement | ~$23.60/hr | $24.95/hr | + ~$1.35/hr |
| Support Level 2.1 | Support Worker – Entry (higher duties) | ~$24.30/hr | $25.71/hr | + ~$1.41/hr |
| Support Level 2.2 | Support Worker – After 1 year | ~$25.20/hr | $26.56/hr | + ~$1.36/hr |
| Support Level 3.1 | Experienced Support Worker | ~$26.80/hr | $28.12/hr | + ~$1.32/hr |
Applies to: float staff, assistants, kitchen hands, and other support roles not counted in educator-to-child ratios.
STEP 2: For Cooks – Pay Comparison Table
| CSE Level | Typical Role Description | Current Min Rate (Jul 2025) | New Min Rate (Mar 2026) | Hourly Increase |
| CSE Level 1 | Cook working toward Cert III (approx. 12 months’ experience) | ~$24.70/hr | $26.19/hr | + ~$1.49/hr |
| CSE Level 3 | Cook holding Certificate III | ~$27.10/hr | $29.52/hr | + ~$2.42/hr |
| CSE Level 5 | Cook holding Diploma of ECEC | ~$30.87/hr | $33.24/hr | + ~$2.37/hr |
Under the updated Children’s Services Award classification structure, cooks can no longer automatically remain on support worker pay rates if they hold, or are working toward, an approved ECEC qualification and may be required to work directly with children to maintain educator-to-child ratios. This change ensures that qualified or qualifying cooks are properly recognised for their contribution to supervision, education, and regulatory compliance.
A cook must now be classified and paid according to the Children’s Services Employee (CSE) level that matches their qualification, not their job title, if:
- they hold or are actively working toward an approved ECEC qualification, and
- they may be counted in ratios or required to work directly with children at any time.
QIP Write up for Responding to the Gender Undervaluation Determination
Quality Area 1 – Educational Program and Practice
Embedded Practice
Our service embedded workforce equity into our educational program by ensuring educators were appropriately classified, remunerated, and supported to confidently implement the approved learning framework. By addressing pay equity and professional recognition, educators were better positioned to engage deeply in intentional teaching, reflective practice, and meaningful program delivery. These practices became part of our everyday operations rather than a one-off response to regulatory change.
Critical Reflection
We critically reflected on how workforce undervaluation had previously impacted educator confidence, continuity of care, and curriculum depth. Through team discussions and leadership reflection, we recognised that educator wellbeing, professional respect, and fair remuneration directly influence children’s learning outcomes. This reflection informed our decision to proactively align staffing structures with the updated award classifications.
Meaningful Engagement
Educators were actively engaged in discussions about the changes to the Children’s Services Award and how these reforms supported professional identity. Families were informed about our commitment to workforce stability and quality, helping them understand how valuing educators enhances consistency, relationships, and learning experiences for children.
Quality Area 2 – Children’s Health and Safety
Embedded Practice
By implementing correct classifications and improved remuneration, our service strengthened educator retention and reduced staff turnover. This ensured consistent supervision, stronger relationships, and safer environments for children. Workforce planning became embedded into our health and safety systems, recognising that stable staffing is a protective factor for children’s wellbeing.
Critical Reflection
We reflected on how frequent staff changes increase risk during transitions, supervision, and routines. This led us to recognise that fair pay and professional recognition are fundamental safety strategies. Leadership decisions intentionally prioritised workforce stability as part of our broader risk-management framework.
Meaningful Engagement
Educators were involved in discussions linking workforce wellbeing to child safety outcomes. Families were reassured that our service actively invests in staffing continuity to support children’s emotional security and physical safety.
Quality Area 3 – Physical Environment
Embedded Practice
Leadership ensured staffing levels and classifications aligned with room complexity, ratios, and environmental demands. By valuing leadership roles such as Room Leaders and Educational Leaders appropriately, educators were supported to design and maintain environments that promoted engagement, safety, and inclusive learning.
Critical Reflection
We critically examined how undervaluation of leadership roles had previously limited time for environment review and innovation. Recognising this, we restructured leadership responsibilities to ensure educators had the capacity to actively curate environments responsive to children’s needs.
Meaningful Engagement
Educators collaborated with leadership to review room layouts and outdoor spaces, supported by clear role expectations and recognition of responsibility. Families were invited to share feedback on how stable staffing enhanced children’s confidence within the environment.
Quality Area 4 – Staffing Arrangements
Embedded Practice
Our service embedded fair, transparent staffing arrangements by re-mapping all employees to the updated Children’s Services Employee (CSE) Levels 1–8. Payroll systems, position descriptions, and induction processes were updated to reflect correct classification, qualifications, experience, and responsibilities.
Critical Reflection
Leadership critically reflected on previous sector norms where educators undertook leadership duties without appropriate recognition or pay. This reflection informed our commitment to equitable staffing structures that acknowledge skill, responsibility, and emotional labour.
Meaningful Engagement
Educators were meaningfully involved in classification discussions and provided opportunities to ask questions and seek clarification. This open communication strengthened trust, morale, and professional relationships across the team.
Quality Area 5 – Relationships with Children
Embedded Practice
Improved workforce stability enabled educators to build secure, respectful and responsive relationships with children. Correct classification and remuneration supported educators to remain in the sector long-term, strengthening continuity of care and emotional connections with children.
Critical Reflection
We reflected on how undervaluation contributes to burnout and disengagement, which can negatively affect relationships with children. Leadership decisions intentionally addressed these risks by prioritising fair employment practices as a foundation for positive interactions.
Meaningful Engagement
Educators shared reflections on how feeling valued professionally enhanced their patience, emotional availability, and capacity to support children’s self-regulation. Families reported stronger connections with consistent educators.
Quality Area 6 – Collaborative Partnerships with Families and Communities
Embedded Practice
The service embedded transparent communication with families regarding workforce reforms, explaining how award changes support educator retention, quality improvement, and stable relationships for children. This strengthened family confidence in the service’s governance and leadership.
Critical Reflection
We reflected on community perceptions of early childhood education as “care” rather than a skilled profession. This led us to intentionally advocate for the sector by educating families about the complexity and professionalism of educator roles.
Meaningful Engagement
Families were meaningfully engaged through newsletters and discussions outlining how valuing educators benefits children and strengthens partnerships. Community confidence in the service increased as families observed reduced staff turnover and stronger educator engagement.
Quality Area 7 – Governance and Leadership
Embedded Practice
Leadership embedded equitable workforce governance by proactively responding to the Gender Undervaluation Determination ahead of mandatory deadlines. Award compliance, classification mapping, payroll planning, and financial forecasting became part of our ongoing governance framework.
Critical Reflection
We critically reflected on the historical undervaluation of early childhood work and its impact on workforce sustainability. This reflection strengthened leadership advocacy, ethical decision-making, and long-term strategic planning.
Meaningful Engagement
Leaders engaged educators, families, and professional partners in understanding the importance of fair pay, professional respect, and sector reform. This shared understanding fostered a culture of transparency, trust, and collective responsibility for quality outcomes.
Where to Go for More Information
For Childcare Centre Management
Fair Work Ombudsman – Children’s Services Award
- Award summaries, classifications, and pay guides
https://www.fairwork.gov.au/employment-conditions/awards/awards-summary/ma000120-summary
Fair Work Pay Guides (official PDFs)
- Updated guides will be published here
https://www.fairwork.gov.au/pay-and-wages/minimum-wages/pay-guides
Fair Work Pay and Conditions Tool
- Use to calculate minimum pay rates once changes take effect
https://calculate.fairwork.gov.au
Industry Guidance
- Sector explanations and translation tables (e.g. Aussie Childcare Network)
https://aussiechildcarenetwork.com.au/news/childcare-news
Professional Support
- BEST Childcare Consulting – classification audits, payroll readiness, QIP evidence, governance support
https://www.braig.com.au
For Employees
Fair Work Ombudsman – Employees
- Understand your classification, minimum pay rate and entitlements
https://www.fairwork.gov.au/employees
Children’s Services Award 2010
- Check how your role is classified and what the minimum rate should be
https://www.fairwork.gov.au/employment-conditions/awards/awards-summary/ma000120-summary
Fair Work Pay and Conditions Tool
- Estimate your correct minimum hourly rate
https://calculate.fairwork.gov.au
Workplace Advice
- Speak with your employer, payroll officer, or union representative if you believe your classification or pay is incorrect
BEST Childcare Consulting
At BEST Childcare Consulting, we believe compliance should never come at the cost of fairness.
This determination is an opportunity to strengthen leadership, retain skilled educators, and embed respectful workplace practices that truly support children, families and staff.
As always, use these changes to lead your service throughout the whole year — not just at audit time — to genuinely earn and sustain an Exceeding rating.
Contact us TODAY.
